Xstrata says job loss real

THE loss of Xstrata-related jobs is no exaggeration, the Anglo-Swiss mining giant claims.

The world's fifth-largest miner announced it had suspended two major projects last Thursday, and said 3250 new jobs that would have been created were now at risk because of the proposed resources tax.

However, the Rudd government claims that Xstrata is exaggerating and trying to create fear within the community.

Xstrata spokesman James Rickards told The Observer yesterday that Xstrata was a publicly listed company with a legal obligation to ensure information was accurate and not misleading. 

“All of Xstrata's public statements, including those regarding the suspension of two Queensland projects and the resulting impact on jobs, remain accurate,” Mr Rickards said. 

“The two projects would have created over 3250 new jobs, which are now at risk. At Ernest Henry, approximately 60 contractors' positions, originally planned to commence construction work within the next three months, have been cancelled.

“At Wandoan, we are relocating our permanent employees while the project is suspended. The equivalent of 150 full-time roles was scheduled to be created over the next 12 months (commencing from July) as part of the ramp-up of activities. These roles will no longer be required.”

However, this isn't the first time Xstrata has made such claims.

In March last year, at the height of the Carbon Pollution Reduction Scheme (CPRS) debate, Xstrata said it wouldn't proceed with the Wandoan project if the CPRS went ahead.

An embarrassed Xstrata then had to back down from the claims, admitting the project wouldn't be substantially affected by the CPRS.